Unusually September and October have proved good months for the worlds stockmarkets this year despite concerns of a double dip recession. In fact companies have improved their balance sheets and there have been tentative signs of improving growth in the UK and better consumer confidence figures in the US.
The markets have supposedly been rising as they anticipate further quantitative easing from the US and UK central banks which is a short term fix and are now nervous that this might not be necessary (actually a good thing).
This speculation is having the greatest impact on currency markets with the dollar sliding against the yen and pulling sterling down with it.
Commodities, especially gold as central banks increase their gold reserves, have been the main winners creeping ever higher. Chinese and Indian growth figures are still spectacular at 9and 8% whilst Germany the economic power house of Europe reported the lowest unemployment in 18 years a sign that they are well on track. Everyone is still after that elusive export led recovery from a weak currency, clearly not a universal option.
Banks in the UK are being criticized for selectively not lending to spur economic growth whilst we suffered so badly when they said yes to anything.
